Walgreens says farewell to PBM business
DEERFIELD, Ill. — Walgreens on Wednesday sold its pharmacy benefit management business, Walgreens Health Initiatives, to Catalyst Health Solutions in a cash transaction for $525 million, subject to certain adjustments. The transaction is structured as an acquisition of all of the capital stock of WHI.
“With nearly 7,700 drug stores as our center of gravity, we are focused more than ever on delivering convenient, affordable, high-quality pharmacy, health and wellness solutions, and on enhancing our full scope of services to become America’s first choice for health and daily living needs,” stated Greg Wasson, Walgreens president and CEO.
Walgreens will retain and look to continue growing its specialty pharmacy and mail-service businesses, and will be providing those services in support of Walgreens, WHI and Catalyst patients. “Our specialty, infusion and mail-pharmacy services are an important extension of our drug stores, retail clinics, worksite health centers and medical facility pharmacies,” Wasson said. “Together, these services and locations are part of our industry-leading 8,000-plus points of care, and are on the front line of helping millions of patients live well, stay well and get well.”
Completion of the transaction is subject to customary conditions, including receipt of regulatory approvals and clearances. The transaction is expected to close by the end of June 2011.
Under a transition services agreement, Walgreens will provide certain services to Catalyst after closing to facilitate a smooth transition for WHI’s existing customers and patients. Walgreens expects these costs to be approximately $40 million and expects to record a gain on the sale of WHI upon closing, which the company believes will offset any one-time or transition costs associated with the transaction in the current fiscal year. The company anticipated that the transaction will be neutral to earnings per share in fiscal 2012.
By acquiring WHI, Catalyst’s PBM membership will increase to more than 18 million members. Walgreens has selected Catalyst to provide PBM and related services for Walgreens employee and retiree prescription drug plans, as well as other Walgreens programs, including the Walgreens Prescription Savings Club.
“We believe WHI’s clients and members will benefit from our sole focus on excelling in providing PBM services,” said David Blair, Catalyst CEO. “We are gaining WHI’s talented employees, who have been integral to the growth and success of the business, and are pleased to welcome them to the Catalyst team. Together, we will provide continuity for our valued customers and deliver market-leading services that will further improve health outcomes.”
For the Walgreens employees who are expected to join Catalyst as part of the transaction, Catalyst will maintain a significant presence in the Chicago area.
Survey: NACo Rx discount cardholders save bundles
WOONSOCKET, R.I., and WASHINGTON — Patients that participated in a prescription discount card program created by the National Association of Counties saved more than $107 million on their medications in 2010, a new survey released by CVS Caremark and NACo found.
What’s more, CVS Caremark and NACo noted, the average discount per prescription was about 24%.
NACo’s prescription discount card program, which is operated by CVS Caremark, was launched in 2004 to address consumers’ need to manage high prices of their prescriptions. The NACo prescription discount cards are accepted at more than 60,000 pharmacies across the country, including national pharmacy chains, regional chains and independently owned, community-based pharmacies.
There is no enrollment form, no membership fee and no restrictions or limits on how frequently the card can be used. Cardholders and their family members may use the card any time their prescriptions are not covered by insurance, NACo said.
Presently, more than 1,300 counties across the United States are enrolled in the program.
"At CVS Caremark, we recognize that medication adherence can positively affect a patient’s health, while also helping to reduce overall healthcare costs," said Troyen Brennan, EVP and chief medical officer at CVS Caremark. "The NACo prescription discount card program helps reduce the cost of medications — one of the most frequently cited barriers to taking medications as prescribed — and is one example of the many tools and programs we administer to help support medication adherence."
For more information on the NACo prescription discount card program, visit Caremark.com/NACo.
HealthOneMed debuts Dispense-a-Pill
LEHIGH VALLEY, Pa. — HealthOneMed has launched a device that combines the abilities of pillboxes, reminders, dispensers and medication alerts into one.
The company announced Tuesday the launch of Dispense-a-Pill, a personal medication manager that it said would provide a business opportunity for companies offering healthcare services. The DAP can manage up to 16 medications, including pills, topical creams, eye drops, inhalers and insulin injections. By connecting to a phone line, it automatically can alert a medication management service provider if a dosage is missed.
“We envision medical monitoring companies, home care agencies, senior communities, pharmacies and others using DAP to offer a new, value-added medication management service,” HealthOneMed founder Gazi Abdulhay said.